DHS Awards $42.5M for Microsoft Enterprise Licenses to Dell Federal Systems

Contract Overview

Contract Amount: $42,521,238 ($42.5M)

Contractor: Dell Federal Systems L.P

Awarding Agency: Department of Homeland Security

Start Date: 2025-03-27

End Date: 2026-03-16

Contract Duration: 354 days

Daily Burn Rate: $120.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MICROSOFT ENTERPRISE LICENSES

Place of Performance

Location: ROUND ROCK, WILLIAMSON County, TEXAS, 78682

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $42.5 million to DELL FEDERAL SYSTEMS L.P for work described as: MICROSOFT ENTERPRISE LICENSES Key points: 1. Significant contract value of $42.5 million for essential software. 2. Competition involved Dell Federal Systems, indicating a competitive bidding process. 3. Risk is moderate, tied to software licensing renewals and vendor lock-in. 4. Sector is IT, specifically software licensing, a critical government function.

Value Assessment

Rating: good

The contract value of $42.5 million for enterprise licenses appears reasonable given the scope of software publishers and the duration. Benchmarking against similar large-scale enterprise agreements would provide further clarity on pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition via a BPA Call, suggesting a robust price discovery process. This method allows multiple vendors to bid, driving competitive pricing.

Taxpayer Impact: The competitive nature of the award is expected to yield fair pricing, maximizing taxpayer value for essential software.

Public Impact

Ensures continued access to critical Microsoft software for U.S. Customs and Border Protection operations. Supports national security and border enforcement by providing necessary technological tools. Potential for cost savings through competitive bidding on enterprise-level licenses.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on a single vendor for enterprise licenses.
Potential for price increases in future renewals.
Cybersecurity risks associated with software vulnerabilities.

Positive Signals

Awarded through full and open competition.
Firm Fixed Price contract type limits cost overruns.
Supports critical border protection functions.

Sector Analysis

This contract falls within the Information Technology sector, specifically software publishers. Government spending on enterprise software licenses is substantial, with benchmarks varying widely based on user count and software suite.

Small Business Impact

While this specific award went to Dell Federal Systems, the nature of enterprise software licensing can sometimes involve smaller resellers or integrators in subcontracting roles, though not explicitly stated here.

Oversight & Accountability

The use of a BPA Call under full and open competition suggests established oversight mechanisms. However, ongoing monitoring of license utilization and vendor performance is crucial for accountability.

Related Government Programs

Software Publishers
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

Vendor lock-in potential
Future price escalation risk
Cybersecurity vulnerabilities in software
Dependence on a single software suite

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $42.5 million to DELL FEDERAL SYSTEMS L.P. MICROSOFT ENTERPRISE LICENSES

Who is the contractor on this award?

The obligated recipient is DELL FEDERAL SYSTEMS L.P.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $42.5 million.

What is the period of performance?

Start: 2025-03-27. End: 2026-03-16.

What is the total cost per user for these Microsoft enterprise licenses, and how does it compare to industry benchmarks?

The provided data does not specify the number of users, making a direct per-unit cost calculation impossible. To assess value, a comparison of the total contract price against the number of licenses and the specific Microsoft products procured is necessary. Industry benchmarks for enterprise agreements vary significantly based on the software suite and volume discounts.

What are the specific cybersecurity risks associated with these Microsoft licenses, and what mitigation strategies are in place?

Cybersecurity risks include potential vulnerabilities within the Microsoft software itself, requiring timely patching and updates. Additionally, unauthorized access or misuse of licenses poses a threat. Mitigation strategies typically involve robust access controls, regular security audits, and adherence to federal cybersecurity mandates like CMMC and NIST guidelines.

How effectively does this contract support the core mission of U.S. Customs and Border Protection, and are there alternative solutions that could offer better value?

These licenses are crucial for enabling CBP's operational functions, including data management, communication, and analysis. While this contract ensures continuity, ongoing market research for alternative software solutions or open-source options could identify opportunities for future cost savings or enhanced functionality, though switching costs can be substantial.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70B04C25Q00000066

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Francisco Partners Management, L.P.

Address: 1 DELL WAY, ROUND ROCK, TX, 78682

Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $81,365,174

Exercised Options: $42,521,238

Current Obligation: $42,521,238

Actual Outlays: $38,955,946

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RTAC24A00000001

IDV Type: BPA

Timeline